Copied from the article dated Jan 26th - http://www.thestreet.com/story/10985295/silver-the-big-investment-of-this-decade.html?obref=obinsite "I think silver is going to be the big investment of this decade," said Sprott, speaking at the Vancouver Resource Investment Conference. " I see the money pouring into silver and I feel the shortage. You see the data from China, you see the data from India, and you say 'why the hell is the price going down?' It makes no sense." Sprott says that in spite of this rising demand, precious metals companies are "being misguided" by reports produced by GFMS Ltd, a leading independent precious metals consultancy which provides data on gold, silver, platinum and palladium market research. "You will notice on the charts that for some bizarre reason the supply and demand are always equal. They're equal because they plugged net implied investment demand to make the numbers balance," said Sprott. "The other day [silver] traded 500,000,000 ounces in a day on the COMEX when [the world] only produces 800,000,000 ounces in a year.] It's a paper market; there's no inventory. I think the supply and demand have been massively miscalculated." Sprott also said he believes certain financial entities are controlling the price of silver, referencing recent lawsuits against J.P. Morgan Chase & Co. and HSBC for allegedly colluding on the silver market and informing each other of large trades. This suit also alleges the banks used their large positions to effect the market by "flooding" it with a disproportionate number of orders. Relating to this and other similar lawsuits, the Commodity Futures Trading Commission (CFTC) has been in the midst of a high-profile, two-year-old investigation of the silver market.
5 year ago China exported 100 million oz of silver. Last year China needed over 200 million oz (import + local production). Where the 300 million oz imbalance shift is visible in any analyzes?
Further comment below. Lets hope for another big year. I hope though that it will be a good buying year for me. Is silver 2011's big performer? Thursday, 27 January 2011 IN trying to predict what 2011 may bring for investors, we're taking a look at silver, reviewing where the metal has been, where it might head this year and the reasons behind it all, writes Gavin Wendt*. ... We believe that gold will comfortably surpass $1500/oz during 2011 and that silver has every chance of stabilising around $30/oz. * This article has been provided by Gavin Wendt, founder of www.minelife.com.au. Source: http://www.miningnews.net/storyview.asp?storyid=2381217§ionsource=s0
